🔥BRUTAL🔥
🎯 Understanding the CONTEXT of SHORT and LONG TERM is KEY in the markets
💥 Today I bring you 1 factor that can move #Bitcoin in the short term and another that can reconfigure THE ENTIRE market in the long term
1️⃣LONG TERM CATALYST: model portfolios
▪️ They are pre-designed templates that brokers (like BlackRock) use to automatically allocate capital to clients
▪️ They evaluate your risk profile and place your money according to a predefined model
▪️ Today they manage more than $7.9 TRILLION
▪️ By 2029, they are expected to exceed $13.2 TRILLION
📍Why does this matter for crypto?
▪️ Today, almost NONE of these models include #crypto
▪️ But that is about to change…
🔍 If only 2% of those funds were allocated to crypto, we would be talking about +$160 billion in new flows
📈 The adoption by model portfolios will be a GIANT milestone
2️⃣SHORT TERM CATALYST: financial conditions in the U.S.
▪️ The financial conditions indicator (liquidity + credit) has returned to the GREEN zone
▪️ What does this mean? That there is easy money flowing in the markets
📉 When it is red, liquidity contracts
📈 When it is green, Bitcoin $BTC skyrockets
📊 What did this indicator show in the past?
▪️ Green in 2011 → BTC from $5 to $1,000
▪️ Green in 2016 → BTC from $400 to $20,000
▪️ Green in 2020 → BTC from $4,000 to $69,000
▪️ Green in 2023 → BTC from $15,000 to $48,000
📍Literally ALL bullish BTC cycles occurred with this indicator in the green zone. And today… it is GREEN again.